Euro Crisis hits GA in Italy
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- Jean
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Euro Crisis hits GA in Italy
[quote"IAOPA"]Italy takes aim at its foot with new aviation 'luxury' tax
Italy has introduced a new 'luxury tax' on private aircraft which will have a serious impact on the aviation industry and is likely to cost the country more than it brings in in revenue. The new tax will be levied on a sliding scale from €1.5 per kilogram per year for aircraft under 1,000 kgs to €7.55 per kg for aircraft over 10,000 kg, with helicopters paying double. While the tax will further depress aircraft ownership in Italy, it could affect every pilot in Europe because it applies to any private aircraft, of any nationality, which remains on Italian territory for 48 hours or more. Not only does that make visiting Italy expensive, but even passing through the country becomes risky. A weather delay, a mechanical problem, or industrial action by ATC could land the transiting pilot with a tax bill running into thousands of euros.
Massimo Levy of AOPA Italy says: "It looks like they really want to put an end GA in this country. Can you imagine an English tourist with a private plane being obliged to pay €3,500 'luxury tax' at the end of his long weekend in Italy? Or the American businessman arriving with his Citation remaining for more than two days?
"What will happen now to Italian GA? I have no idea. It looks like we really might have reached the end of the road."
AOPA Italy has spoken with a number of politicians making it clear that while aircraft owners should contribute at what is seen to be a time of national emergency, the levels of tax were so excessive that they would cripple the industry and therefore produce less revenue than they would if they were set at more sensible levels. Political promises of alleviation have come to nothing.
The new taxes, imposed under a decree named 'Save Italy' which also raises the pension age by five years, hit almost everything but are particularly heavy on items such as cars over 250 hp, boats more than 10 metres long, and all aircraft. While boats and cars enjoy a discount on the basis of the age – after 20 years a boat pays only 50% of the tax and a car does not pay at all – aircraft pay the full amount indefinitely.
Airlines, charter and aerial work operators are exempt from the tax, as are government, police and military aircraft. Others must pay annually:
Up to 1,000 kg MTOW €1.50 per kg
Up to 2,000 kg MTOW €2.50 per kg
Up to 4,000 kg MTOW €4.25 per kg
Up to 6,000 kg MTOW €5.75 per kg
Up to 8,000 kg MTOW €6.65 per kg
Up to 10,000 kg MTOW €7.10 per kg
Over 10,000 kg MTOW €7.55 per kg
Helicopters must conform to this weight scale but pay double the amounts. Gliders, motorgliders, gyroplanes and balloons will pay a fixed €450 per year.
The application of these tax rates to foreign aircraft will discourage aerial tourism, but Massimo Levy wonders whether anyone will really notice. "Italy already extends poor hospitality to foreign GA airplanes, with all its airspace and airport regulations and charges," he says, "so possibly no-one will notice that the trade has all gone, unless something happens like a foreigner refusing to pay and the authorities impounding an aircraft. Something like this would make a lot of bad publicity to the country.
"Perhaps AOPA members will consider writing to the Italian embassy in their respective countries pointing out that Italy will lose more than it gains by this."
[/quote]
I don't plan to spend vacation in Italy with my plane anymore.
Hope this "idea" won't spread over the rest of Europe.
My DA40 suddenly lost some of its value
Italy has introduced a new 'luxury tax' on private aircraft which will have a serious impact on the aviation industry and is likely to cost the country more than it brings in in revenue. The new tax will be levied on a sliding scale from €1.5 per kilogram per year for aircraft under 1,000 kgs to €7.55 per kg for aircraft over 10,000 kg, with helicopters paying double. While the tax will further depress aircraft ownership in Italy, it could affect every pilot in Europe because it applies to any private aircraft, of any nationality, which remains on Italian territory for 48 hours or more. Not only does that make visiting Italy expensive, but even passing through the country becomes risky. A weather delay, a mechanical problem, or industrial action by ATC could land the transiting pilot with a tax bill running into thousands of euros.
Massimo Levy of AOPA Italy says: "It looks like they really want to put an end GA in this country. Can you imagine an English tourist with a private plane being obliged to pay €3,500 'luxury tax' at the end of his long weekend in Italy? Or the American businessman arriving with his Citation remaining for more than two days?
"What will happen now to Italian GA? I have no idea. It looks like we really might have reached the end of the road."
AOPA Italy has spoken with a number of politicians making it clear that while aircraft owners should contribute at what is seen to be a time of national emergency, the levels of tax were so excessive that they would cripple the industry and therefore produce less revenue than they would if they were set at more sensible levels. Political promises of alleviation have come to nothing.
The new taxes, imposed under a decree named 'Save Italy' which also raises the pension age by five years, hit almost everything but are particularly heavy on items such as cars over 250 hp, boats more than 10 metres long, and all aircraft. While boats and cars enjoy a discount on the basis of the age – after 20 years a boat pays only 50% of the tax and a car does not pay at all – aircraft pay the full amount indefinitely.
Airlines, charter and aerial work operators are exempt from the tax, as are government, police and military aircraft. Others must pay annually:
Up to 1,000 kg MTOW €1.50 per kg
Up to 2,000 kg MTOW €2.50 per kg
Up to 4,000 kg MTOW €4.25 per kg
Up to 6,000 kg MTOW €5.75 per kg
Up to 8,000 kg MTOW €6.65 per kg
Up to 10,000 kg MTOW €7.10 per kg
Over 10,000 kg MTOW €7.55 per kg
Helicopters must conform to this weight scale but pay double the amounts. Gliders, motorgliders, gyroplanes and balloons will pay a fixed €450 per year.
The application of these tax rates to foreign aircraft will discourage aerial tourism, but Massimo Levy wonders whether anyone will really notice. "Italy already extends poor hospitality to foreign GA airplanes, with all its airspace and airport regulations and charges," he says, "so possibly no-one will notice that the trade has all gone, unless something happens like a foreigner refusing to pay and the authorities impounding an aircraft. Something like this would make a lot of bad publicity to the country.
"Perhaps AOPA members will consider writing to the Italian embassy in their respective countries pointing out that Italy will lose more than it gains by this."
[/quote]
I don't plan to spend vacation in Italy with my plane anymore.
Hope this "idea" won't spread over the rest of Europe.
My DA40 suddenly lost some of its value
40.446, G1000, KAP 140, Hartzell Metal
- Thomas
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Re: Euro Crisis hits GA in Italy
This means ... No more nice trips to Venice to me. Thomas
Thomas Bienz DA40-180 40.337 D-ENMA (sold 08/2022)
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Re: Euro Crisis hits GA in Italy
Same here.... I had it planned for next spring those idiots...Thomas wrote:This means ... No more nice trips to Venice to me. Thomas
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Re: Euro Crisis hits GA in Italy
Never really planned on going there. No reason to.
I guess the Italian gov. just made that more of a certainty for me.
I guess the Italian gov. just made that more of a certainty for me.
- Jean
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Re: Euro Crisis hits GA in Italy
I hope this is not real. I guess the tax will be scaled to time spent in Italy.
Imagine that all european countries decide the same policy.
I will be condamned to fly in Belgium only! I will trade my DA 40 against an electric bike !
Imagine that all european countries decide the same policy.
I will be condamned to fly in Belgium only! I will trade my DA 40 against an electric bike !
40.446, G1000, KAP 140, Hartzell Metal
- carym
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Re: Euro Crisis hits GA in Italy
I feel your pain. Just to add another perspective, in Minnesota (in the USA) I had to pay a yearly registration fee for my DA42 that amounted to 1% of purchase price. This was a yearly registration fee of $5000 USD. I now live in Indiana and am glad Indiana hasn't decided to do the same thing, but who knows what will be coming if tax revenues remain poor.
Cary
Cary
Cary
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S35 (1964 V-tail Bonanza)
Alaska adventure: http://mariashflying.tumblr.com
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- JoeyL
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Re: Euro Crisis hits GA in Italy
Ouch. Any other ridiculous states charge this tax? Was it a property tax or registration?
- Gary
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Re: Euro Crisis hits GA in Italy
That is a good reason not to live in Minnesota although it is a nice place to visit. I fly to FCM several times a year to take my wife shopping and to the University of Minnesota Arboretum.carym wrote:I feel your pain. Just to add another perspective, in Minnesota (in the USA) I had to pay a yearly registration fee for my DA42 that amounted to 1% of purchase price. This was a yearly registration fee of $5000 USD. I now live in Indiana and am glad Indiana hasn't decided to do the same thing, but who knows what will be coming if tax revenues remain poor.
Cary
- carym
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Re: Euro Crisis hits GA in Italy
I can't say that the MoA is worth visiting, but the arboretum is great.Gary wrote:That is a good reason not to live in Minnesota although it is a nice place to visit. I fly to FCM several times a year to take my wife shopping and to the University of Minnesota Arboretum.carym wrote:I feel your pain. Just to add another perspective, in Minnesota (in the USA) I had to pay a yearly registration fee for my DA42 that amounted to 1% of purchase price. This was a yearly registration fee of $5000 USD. I now live in Indiana and am glad Indiana hasn't decided to do the same thing, but who knows what will be coming if tax revenues remain poor.
Cary
Cary
Cary
DA42.AC036 (returned)
S35 (1964 V-tail Bonanza)
Alaska adventure: http://mariashflying.tumblr.com
DA42.AC036 (returned)
S35 (1964 V-tail Bonanza)
Alaska adventure: http://mariashflying.tumblr.com
- Gary
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Re: Euro Crisis hits GA in Italy
My kid loves the rides and my wife loves to shop so the MoA is ok for them.carym wrote:I can't say that the MoA is worth visiting, but the arboretum is great.Gary wrote:That is a good reason not to live in Minnesota although it is a nice place to visit. I fly to FCM several times a year to take my wife shopping and to the University of Minnesota Arboretum.carym wrote:I feel your pain. Just to add another perspective, in Minnesota (in the USA) I had to pay a yearly registration fee for my DA42 that amounted to 1% of purchase price. This was a yearly registration fee of $5000 USD. I now live in Indiana and am glad Indiana hasn't decided to do the same thing, but who knows what will be coming if tax revenues remain poor.
Cary
Cary